India’s insurance sector has created a $64m pool to provide cover for fertiliser imported from Russia and Belarus.
As reported by the Indo-Asian News Service (IANS), a senior industry figure told the site that bulk of the pool amount will be contributed by GIC Re, with all other multi-line non-life insurers contributing to the pool corpus.
The senior industry official, preferring anonymity, told IANS. “With European reinsurers not willing to provide reinsurance support to imports from Russia and Belarus and while India imports a sizable volume of its fertilisers from these two countries, the non-life insurance industry has decided to create a Rs 500 crore pool.”
As a response to Russia’s invasion of Ukraine, reinsurers are not providing cover to goods leaving Russia or Belarus.
In response, the Indian insurance sector has formed this pool in order to insure the fertiliser imports by the primary insurers will be ceded to the pool after deducting some administrative expenses. Any claims are to be paid out of the pool.
